Debt Ceiling Debate Last Year Cost Taxpayers $18.9 Billion In Higher Interest Payments On Debt, Study FindsQuicklink submitted By Amanda Lang Permalink
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GOP obstructionism revisited
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|Last summer's seemingly interminable debt-ceiling battle is going to cost taxpayers billions, according to a new report.
All told, the political fiasco will cost taxpayers $18.9 billion over 10 years, the Bipartisan Policy Center has found. That's largely the result of the government having to borrow at higher interest rates during the standoff, a time when investors feared the possibility of a default.
Forever blocked the debt-ceiling crisis out of your mind? This was the one in which Congressional Republicans threatened not to raise the country's borrowing limit unless lawmakers reduced the deficit. Eventually, the Obama administration and Congress reached a last minute deal, but amid the drama, experts warned that an inability to make a deal would lead to an immediate risk of a U.S. government default, financial crisis and recession.